bKARACHI: Overseas workers’ remittances to Pakistan reached $3.656 billion in August 2026, marking a 16.5% increase compared with the same month last year, according to data released Wednesday by the State Bank of Pakistan.
On a month-on-month basis, remittances edged up 0.7% from July 2026.
Cumulatively, remittances totaled $7.3 billion during the first two months of fiscal year 2027 (July-August), a 14.7% rise from $6.4 billion received in the same period a year earlier.
Analysts expect remittances for FY27 to clock in at $43.7 billion.
Remittances remain a critical pillar for Pakistan’s external account, bolstering economic activity and supplementing disposable incomes for households dependent on overseas earnings. However, analysts caution that heavy reliance on worker transfers is unsustainable over the long term, warning it may foster import-driven consumption and intensify symptoms of Dutch disease, an economic condition in which a boom in one sector undermines competitiveness in others.
The government continues to promote remittances through incentives and formal banking channels to sustain steady growth and support macroeconomic stability.
Saudi Arabia, UAE Lead Inflows
Overseas Pakistanis in Saudi Arabia sent the largest share in August, remitting $873.5 million, a 19% increase from $737 million in August 2025, though down 4% from $914 million in July 2026.
Remittances from the United Arab Emirates rose 17% year-on-year to $749.8 million, up from $643 million in August 2025. Month-on-month, inflows from the UAE increased 2% from $737 million in July.
Workers in the United Kingdom sent $563.7 million, a 22% jump from $463 million in August 2025.
Inflows from the United States totaled $308.9 million in August, up 16% from $267 million a year earlier, though down 2% month-on-month.
Remittances from European Union countries reached $496 million in August, a 7% monthly increase from $461 million in July.
